Happy Forgings files draft papers for IPO with Sebi, to raise Rs 500 crore via fresh issue

economictimes.indiatimes.com:

Happy Forgings has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for an initial public offering of shares, which includes fresh issue and an offer for sale by promoter and investor. Through the fresh issue of shares, the company plans to raise Rs 500 crore. Promoter Paritosh Kumar Garg (HUF), and India Business Excellence Fund – III will cumulatively sell 8,054,910 shares in the offer for sale.

India Business Excellence Fund – III is a buyout fund managed by Motilal Oswal Private Equity. Currently, promoter and group entities cumulatively hold 88.24% stake in the company. India Business Excellence Fund owns 11.76% stake.

Happy Forgings is the fourth largest engineering-led manufacturer of complex and safety critical, heavy forged and high precision machined components in India. It primarily caters to domestic and global original equipment manufacturers, manufacturing commercial vehicles in the automotive sector. In the non-automotive sector, it caters to manufacturers of farm equipment, off-highway vehicles and manufacturers of industrial equipment and machinery for oil and gas, power generation, railways and wind turbine industries.

Of the Rs 500 crore to be raised through fresh issue, the company plans to utilise Rs 214 crore for purchasing equipment, plant, and machinery. It will utilise Rs 190 crore for prepayment of certain outstanding loans. As of July 15, its total outstanding borrowings amounted to Rs 203 crore.